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Airtel Brand Extension AnalysisDigital TV- ‘Come Home to the Magic’

Bharti Airtel- What is it?

#1 Operator &

Service Brand in India

Present in20

Countries

312.9 mn customers

#2OperatorIn Africa

#4 wireless

operator in the world

US$14.2bn Revenue (FY13-14)

4% of the world’s pop. on Airtel

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Global Telecom Company with a Diversified Portfolio

Airtel Business• Services to large enterprises and carriers

• Single point of contact for all telecom needs

• Over 225,000 Rkm1 covering 50 countries across 5 continentsTower Infrastructure Services• Bharti Infratel owns 36,747 towers

1 across 11 circles• Bharti Infratel owns 42% stake in Indus Tower which has 115,040 towers1 across 22 circles

• Current market cap: US$11.5 bn2

Telemedia Services• Fixed telephony and broadband internet (DSL + IPTV)

• 3.4 mn1 customers• Services provided across 87 cities

Mobile Services• Wireless mobile services across 20 countries

• Market leader in India both in terms of subscribers and revenue

• 299.7 mn1 wireless subscribers globally

Digital TV• Pan India DTH operations• Amongst the top three players with 9.8 mn1 subscribers

• Coverage across 639 districts 1

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To enrich the lives of customers. Their obsession is to win customers for life through an exceptional experience• Multi-platform services in telecom, enterprise

and digital television, unified under brand ‘airtel’

• Successfully unified operations across the globe under the umbrella of ‘airtel’

• Amongst the Top 100 of Most Valuable Global Brands List

• No. 1 service brand in India• One of the top 10 brands in Africa – within 3

years of operations there

Airtel’s Vision

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Airtel has always targeted customers who value quality and

service over price. With DTH also, they are not the cheapest in the industry. But,

they value performance

DTH- What is it?

First launched in India-

October, 2003 by Dish TV

The 2011 Act made it mandatory to shift to digital transmission- giving a boost to the

DTH industry6 Big Players in

the Indian market

42% of Indian homes

expected to be on DTH by 2020

Indian DTH market expected to cross

$5 billion revenues by 2020, from $1.2

billion in 2012

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The Major Players in India

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Subscriber Base in Millions

Dish TV28%

TATA Sky19%Sun Direct

16%

Airtel16%

Videocon11%

BIG TV9%

2011

Dish TV27%

TataSky21%Sun Direct

18%

Airtel15%

Videocon11%

Reliance7%

2014

No major change

Revenue Growth of Airtel DTH

2010 2011 2012 2013 20140

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

2597

5663

7228

8100

9012

Revenue in INR Millions

Revenue in INR Millions

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Growth of Airtel Subscriber Base

Set up in 2008

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A high quality channel provider

Slim and Sleek design

Option to pause LIVE TV, recording etc.

Interactive services like games and

cooking channels

PRODUCT PROMOTIONPLACEPRICE

New Subscribers- Multiple Channel Packs with 45 day subscription included in the first time paymentExisting Subscribers- Can get channel packs or individual channels at different monthly pricesStarting from Rs. 179 per monthThe packs are different for different regions (Rural/Urban, North/South)

Due to competition from the cheaper SUN Direct in South India, the prices are relatively cheaper in South for Airtel DTH too

PRODUCT PROMOTIONPLACEPRICE

Nation wide Presence

Online Orders and Recharge is also available

Distribution through dedicated Airtel shops and General Retail shops

Retailers get a voucher: They don’t stock the set top boxes

On placing an order, an Airtel employee comes to the client’s place and installs the Set Top Box

PRODUCT PROMOTIONPLACEPRICE

To increase the customer base Increase usage of existing customers

Promotion using current online platforms

PRODUCT PROMOTIONPLACEPRICE

TV Advertising

ttps://www.youtube.com/watch?v=4Xd5qQgIrLohttps://www.youtube.com/watch?v=jciMOd8cYbshttps://www.youtube.com/watch?v=dC_SRk-Si8s

Links to Advertisements:

Emphasizes on the family watching TV together

Emotional Appeal to the Advertisements

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Print Advertising

Rational Route- Emphasis on quality of picture through better technology

Emotional Route- As a gift to your beloved

Competitive Frame of Reference

Local Cable Providers

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Broadly Same across bothHardware & Software

Remote Universal & Light weight Not Universal, Heavy

Channels More number Less number

COMPARISON

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The prices are comparable to the market but Airtel is not considered the cheapest

Standard Definition box cost: Airtel- INR 1740 Tata Sky- INR 1700

COMPARISON

Perceptual Map

High Picture Quality

Good Packaging of Channels

Low Picture Quality

Poor Packaging of Channels

Points of DifferenceTV portability in

automobiles

High Quality Viewing Experience- Only DTH provider

with SRS International

Satellite

World’s Largest Network Operation

Centre (NOC) at Manesar- providing

state of the art customer

experience

Universal Remote controlling set top box

and TV bothdishes and

satellite combination give higher

signal in rain

Service leader- pioneered 4hr

installation (99%

customers)

Points of ParityCompetitive

prices

Pause LIVE TV

Interactive services

Video on Demand

Recorder with external USB

Over 383 Channels, including

over 25 HD channels

SEGMENTATION

INCOME BASED

BASIC PACKS(Low Income)

HIGH VALUE PACKS

(High Income)

GEOGRAPHY BASED

NORTH(Rural and Urban

Divided)

SOUTH(Rural and Urban

Divided)

Efforts have been made to gather a market share in the rural areas by providing low cost packs

For different geographies, regional language packs are provided

SEGMENTATION and TARGETING

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POSITIONING STATEMENT

Airtel is targeting the Middle and Upper Middle Class families in urban areas. It is

positioning itself as a superior quality channel provider meant for families

watching TV together

My plan in DTH- Based on Usage Pattern of consumer, offers are developed for different users

This is a form of targeted marketing, wherein specific offers are given to specific segments of customers

Shift to My Plan in DTH

Brand LadderingRelaxing Home

Entertainment System

Watch my favourite shows with my loved

ones

Provides Best Quality Picture

Sleek DesignEasy to Use Remote

EMOTIONAL BENEFIT

ATTRIBUTES

FUNCTIONAL BENEFIT

VALUES

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Brand Resonance Model

High Brand RecallMostly in Telecom but in DTH also,

Recognition is very high

Reliable product with very high service efficiency, sleek design and competitive price

Used by middle to high income consumers. Brand has a personality of Competence

‘Come home to the magic’ induces a feeling of excitement. Also, Airtel is a reputed brand giving social approval

Superior quality & high credibility but need more expertise. Superiority in terms of service

Brand is yet to reach Resonance

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Reaching ResonanceOne Airtel- customers using Airtel sims are incentivized to use Airtel DTH, Broadband

Attitudinal Attachment-customers feel that Airtel always provides the best service and they do not want to use any other brand

Creating an Airtel family to build a sense of community- through online groups and offline exercises where Airtel users are brought together

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SUMMARY

Airtel DTH

Started in 2008

More than 15%

market share

High Brand Recall

Targets Families

Provides Best

Quality

Slim & Sleek

Design

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CREDITSSlide Number 2Source: TRAI and Informa Telecoms and MediaNotes:1. As of Dec 31, 20142. For the regions in which Airtel has a footprint3. Fourth largest mobile operator in the world as of September 30, 2012, based on proportionate equity subscriptions .Based on data from Informa Telecoms and Media

Slide Number 3Source: TRAI and Informa Telecoms and MediaNotes:1. Bharti Airtel Quarterly Report for quarter ending Dec 31, 20142. Market Cap data as on Apr 9, 2015

Slide Number 4• Notes:1. As per The BrandZ Top 100 Most Valuable Global Brands study conducted by leading global research firm Millward Brown- May-20122. Brand Equity’s Most Trusted Brands Annual survey – 2014

Slide Number 6Source: The Hindu News Articleshttp://www.thehindubusinessline.com/industry-and-economy/info-tech/indian-dth-market-revenue-to-cross-5-bn-by-2020-study/article4620219.ece

Slide Numbers 10 and 11Source: Annual Reports of Bharti Airtel

Slide Numbers 14,15,16,18,19Source: GMID Database and Airtel Websitehttp://www.askvg.com/review-comparison-between-airtel-digital-tv-and-tata-sky-dth-services-in-india/

Under the guidance of:

Brand Management Couse

Nandita GuptaIIM Lucknow, PGP30151

Term IV

Brand Extension- Airtel DTH